Fund Manager:
Hang Seng Investment Management

Fund Name:
Hang Seng Islamic China Index Fund

Launch Date:
Nov-07

Screening (except economy):   
Islamic Shariah fund 

Key Characteristics:
Hang Seng Islamic China Index Fund is the first Islamic equity fund avaliable to HK retail investors. The fund aims to match the performance of the Dow Jones Islamic Market China/Hong Kong Titans Index through investing primarily in constituent stocks of the index. The index tracks 30 of the largest Shariah-compliant companies whose primary operations are in China and Hong Kong but trade on the Hong Kong stock exchange.  

To be included in the index, stocks must pass industry and financial ratio screens for Shariah compliance. Companies are excluded if they are involved in alcohol, defense/weapons, entertainment, financial services, pork-related products and tobacco. In addition, companies are also avoided if their following financial ratios are 33% or more: (1) debt divided by 12-month avg. market cap.; (2) cash plus interest-bearing securities divided by 12-month avg. market cap.; and (3) accounts receivables divided by 12-month avg. market cap. Stocks that meet these requirements are ranked first by float-adjusted market capitalization and then by 12-month average daily trading volume using the local currency. A final rank by an equally weighted combination of the free-float market cap. and trading volume is applied. When the index was launched in early October 2007, the top five components by float-adjusted market cap. were China Mobile, Cnooc, Esprit Holdings, China Unicom, and Li & Fung.

Asset Size:
HKD 1 billion

Additional Information:
http://www.hangseng.com/hsb/eng/per/invs/ifs/hsiis/index.html
http://www.hangseng.com/einvc/eng/getpage.asp?app=eINVCFundSearchKeyResultDetails&house_id=57#